Infiniti Tops Customer Service Study

The Daily Auto Insider: Infiniti earned the highest ranking in J.D. Power and Associates' 2003 Customer Service Index Study.

, 's luxury brand, earned the highest ranking in J.D. Power and Associates' 2003 Customer Service Index Study, which measured customer satisfaction with dealer service during the first three years of vehicle ownership. The 2003 study is based on responses from more than 105,000 new vehicle owners and lessees, Power said in a statement.

Power said that the study, now in its 22nd year, found the balance of work at dealerships is tilting away from repairs and more toward regular scheduled maintenance. Routine maintenance made up 57 percent of dealer service in 2003, up from 47 percent in 1999.

"Less warranty work means that automakers are taking cost out of their products through quality improvements," said Joe Ivers, partner and executive director of quality/customer satisfaction at J.D. Power and Associates. "To replace this declining revenue, dealers must now compete with other service providers, such as independent service facilities, for customer-paid service business, making them more accountable to their customers."

Customer satisfaction with dealer service has improved industry-wide by eight points over 2002 — 851 compared with 843 — reflecting the fourth consecutive improvement since the current study metrics were established in 1999.

The study notes that sales increases over recent years among certain franchises, particularly among some European nameplates, have resulted in bottlenecks at service bays. As growth in service capacity and accessibility have been outpaced by sales growth, some customers report frustration in getting their vehicles into the dealership in a reasonable and convenient time. The 2003 study shows significant improvements being made in this and other areas, among both Audi and Mercedes-Benz franchises.

"Dealers that now have more customers are being challenged to find ways to keep their customers flowing efficiently through their service bays," said Ivers. "Efficiency problems can also have a negative effect on other unrelated aspects of the service experience, even with regard to a customer's critique of the vehicle itself."

Infiniti ranks highest in the 2003 study with an index score of 900. Saturn, which led in 2002, follows Infiniti in the ranking, dropping four index points to 896. Acura, Lexus and Lincoln tie for third position at 895.

Suzuki is the most improved nameplate in 2003, increasing 5 percent over 2002. Audi and Mercedes-Benz were each up 4 percent, while Ford and Mitsubishi each improved 3 percent.

Popular Models Bring Reverse Incentives

Despite massive discounting — which averages about $3,000 off the sticker price of every new car sold in recent months — an increasing number of popular new cars are selling at above-sticker-price premiums, The Wall Street Journal reported.

And while many models languish on dealer lots, some limited-edition cars like Ferraris, and popular models such as Acura SUVs and Honda minivans, have waiting lists of customers.

Among the hot models mentioned in the WSJ story are the Protege, which commands an extra $2,100 beyond the $20,480 sticker price; Volkswagen's Touareg, which is going for $2,300 more than the $34,900 list price; and Toyota's redesigned Sienna minivan, which typically goes for about $1,100 above its $36,930 sticker price.

In all, about 45 models available in the U.S., or some 15% of the total, are selling above the manufacturer's suggested retail price, the story said.

The dealer markups on popular vehicles come in several different forms: the so-called "market adjustment"; dealer "finders' fees"; line-jumping fees; and no-choice options that the buyer may not want but must take to purchase the car.

While carmakers discourage dealers from charging more than the advertised sticker price for fear it will tarnish the manufacturer's reputation, there are no rules against it, the story said.

Some of the cars with the biggest markups today are the "usual suspects," the WSJ noted. Customers are paying an average of $2,050 over the $54,500 sticker price for the BMW M3 and the Mercedes-Benz CLK brings an average of about $800 above list price. And the "phenomenon is now spreading to a much wider variety of vehicles."

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